75B-1-302. Asset protection trust.

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Effective 5/7/2025

75B-1-302. Asset protection trust. -- Governing law.

(1)A creditor of a settlor of an asset protection trust may not:

(a)satisfy a claim or liability of the settlor in either law or equity out of the settlor's transfer to the asset protection trust or the settlor's beneficial interest in the asset protection trust;

(b)force or require the trustee to make a distribution to the settlor, as beneficiary; or

(c)require the trustee to pay any distribution directly to the creditor, or otherwise attach the distribution before the distribution has been paid or delivered by the trustee to the settlor, as beneficiary.

(2)Notwithstanding Subsection

(1), this part does not:

(a)prohibit a creditor from satisfying a claim or liability from the distribution once the distribution has been paid or delivered by the trustee to the settlor, as beneficiary; or

(b)nullify or impair a security interest that was granted by a settlor or a trustee with respect to property that is transferred to the asset protection trust.

(3)A trust is subject to this part if:

(a)the trust is governed by the laws of this state as described in Section 75B-2-107 ; and

(b)the trust meets the requirements of this part.

(4)Notwithstanding Subsection 25-6-402(2) , a court of this state has exclusive jurisdiction over an action or claim for relief that is based on a transfer of property to an asset protection trust.

Amended by Chapter 310 , 2025 General Session

Amended by Chapter 338 , 2025 General Session